Business leaders urge easier NAFTA regulations

Updated 10:24 am, Friday, November 16, 2012

Despite the success of the North American Free Trade Agreement over nearly two decades, more trade barriers need to fall for the continent to continue growing as the world's largest trading bloc.

That was the consensus of several speakers Thursday night at the start of the two-day NAFTA20 conference, attended by more than 500 business and government leaders from the United States, Mexico and Canada.

The biggest barrier to economic growth on the continent is Mexican laws that prohibit foreign ownership stakes in oil and natural gas fields, said Mexico's ambassador to the United States, Arturo Sarukhan.

“If the next government in Mexico can put on the table proposals to open the energy sector, this is the great game-changer,” Sarukhan said. “It means energy-sufficiency and security will become a reality.”

The lack of “reform in Mexico is the biggest constraint on further growth,” Anastasio said. “I am encouraged to hear the Mexican president-elect has that on his agenda. Reform would start a flood of investment that is not there today.”

Sarukhan also stressed that the U.S. and Mexico push forward with the forming Trans-Pacific Partnership that would join North America with Asian trading powerhouse nations because, he said, the resulting streamlining of trade would make supply chains stronger in North America.

H-E-B President and Chief Operating Officer Craig Boyan said he foresees accelerating growth in North American trade in the grocery business partly because of rising quality standards at Mexican farms.

“We already are seeing a double-digit NAFTA growth rate,” Boyan said.

H-E-B operates 43 stores in northern Mexico and buys much of its produce for its more than 300 Texas stores from Mexico. NAFTA, he pointed out, has allowed H-E-B to import fruits and vegetables from Mexico during seasons it cannot get them from U.S. producers.

But labeling laws in the United States and Mexico continue to change constantly, adding to producers' costs, Boyan said. He said costs associated with U.S. and Mexican labeling laws should be eased.

Other speakers widely praised the huge increases in North American trade volumes, which they credited to NAFTA.

Correction: H-E-B President and Chief Operating Officer Craig Boyan said costs associated with U.S. and Mexican labeling laws should be eased. Boyan's remarks were misrepresented in a story on Friday's page C5.